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CBN reviews deadline for eFASS returns

* As Naira stabilizes

By Babajide Komolafe
The Central Bank of Nigeria (CBN) has reviewed the deadline for banks to submit monthly returns through the Electronic Financial Analysis and Surveillance System (eFASS).


Meanwhile, the naira enjoyed relative stability on Monday in the official and interbank segments of the foreign exchange market.

In a circular to all authorized dealers and reporting financial institutions, signed by the Director, Trade and Exchange Department, and  titled “Deadline for rendition of returns through eFASS”, the CBN stated “In a bid to ensure timely collation and analysis of returns for policy initiation and or review, notice is hereby given to all authorized dealer banks and other reporting institutions that the deadline for the submission of monthly returns on foreign exchange transactions to the Trade and Exchange Department, is now reviewed.

“Accordingly, all monthly returns via the eFASS shall be submitted not later than the 5th day of the following month. However, where the 5th day falls on a weekend or public holiday, the returns shall be forwarded the next working day.”

The naira enjoyed relative stability in the inter-bank and official segments of the foreign exchange markets on Monday.
At the official segment, the naira gained one kobo as the official exchange rate closed at N148.88 per dollar as against N148.89 last week.
The naira, however, lost 1.25 kobo at the interbank market as the interbank exhange rate closed at N151.325 as against N151.3375 per dollar.

Last week, the naira moved closer to the N150 per dollar mark, as it depreciated by 15 kobo at the official market where the  official exchange rate rose to N148.89 per dollar from N148.75 per dollar previous week following over 100 per cent jump in demand at the Wholesale Dutch Auction System (WDAS) sessions conducted by the CBN.

Demand rose to $726.26m from $304.08m the previous week. Total amount sold also rose from $304.08 to $600 but not enough to meet the rise in demand.

The unsatisfied demand impacted on the naira in the inter bank market as the interbank exchange rate rose from N151.205 to N151.325 per dollar, indicating 12.5 kobo depreciation.

On the international scene, the euro climbed the most versus the dollar in more than two weeks as signs that Europe’s economy may weather the 16-nation region’s sovereign-debt crisis spurred traders to end bets the currency would fall.
Europe’s common currency pared gains after Moody’s Investors Service lowered Greece’s credit rating.

The euro rose for a third day versus the yen after a report showed industrial production in the region expanded at a faster pace than forecast.

The Australian and New Zealand dollars rose versus the yen as gains in stocks and crude oil spurred demand for higher- yielding assets.

“People were super-bearish and there wasn’t enough bad news to maintain it,” said Sebastien Galy, a currency strategist at BNP Paribas in New York, who predicted the euro may rise to $1.24 this week.
“There’s a rally in risk taking. Equity markets are going higher and that’s helpful.”

The euro advanced as much as 1.5 per cent, the most on an intraday basis since May 27, to $1.2299 before trading at $1.2242 at 1:16 p.m. in New York. It rose 1.2 per cent to 112.33 yen, from 111. Japan’s currency fell to 91.76 per dollar from 91.65.

The Australian dollar advanced 1.3 per cent to 78.92 yen on speculation investors will boost carry trades, in which they borrow money in nations with low interest rates to invest in higher yielding assets.

Japan’s benchmark rate of 0.1 per cent, lower than Australia’s central bank rate of 4.5 per cent, makes the yen a popular choice for funding such transactions.


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